Dfs Furniture Plc Regulatory News (DFS)

DFS Furniture plc

(the "Company")

PERFORMANCE CONDITIONS FOR AWARDS GRANTED ON 6 OCTOBER 2020 UNDER DFS FURNITURE PLC'S UNDER THE LONG-TERM INCENTIVE PLAN (THE "LTIP")

As previously announced, DFS Furniture plc (the Company) granted a Nil-Cost Option over shares (the FY21 Award) under the LTIP on 6 October 2020 to the CEO and CFO as listed in the table below.

 Details of the conditional share awards under the LTIP are as follows:

As disclosed in the FY2020 Directors' Remuneration Report, the Committee felt it was unlikely that it would be able to robustly set three-year EPS targets for the FY21 Award at the grant date, given the significant uncertainty in the wider economic environment. On this basis, the Committee agreed to determine the EPS targets applicable to the FY21 Award within six months from the Date of Grant, in line with the Investment Association's concession.

The Committee has now conducted a review of the targets taking account of the Group's strategic plan as well as the outlook for the sector and general macroeconomic conditions. Following careful consideration, the Committee approved the target range set out below with EPS stated as an absolute figure which needs to be achieved in the financial year ending 25 June 2023. The Committee is cognisant that the threshold and maximum level of EPS in FY2023 is beneath that set for the previous award under the FY2020 LTIP scheme. The Committee considered that the significant impact that Covid-19 has had on the economy, resulting in the increased number of shares in issue, made a rebasing of the target range for the FY21 Award appropriate.

In determining the appropriate target range, the Committee took account of the Group's strategic plan targets over the performance period. The proposed performance targets represent significant growth in total profitability upon the pre-Covid-19 FY2019 financial performance. The Committee was also comfortable that the threshold performance target was in line with the arithmetic mean of analysts' consensus forecast for FY2023.

FY21 LTIP Award - Performance targets

(i) Adjusted EPS (50% of the FY21 Award)

(ii) Relative TSR (50% of the FY21 Award)

The proposed performance target for the Relative TSR element mirror the last two LTIP awards (FY19 and FY20).

The performance period for the FY21 Award began at the beginning of the Company's 2021 Financial  Year and will finish at financial year ending 25 June 2023.

In line with the Directors' Remuneration Policy, the Committee will have overriding discretion to adjust the formulaic vesting outcome of this award if it is deemed necessary in order to ensure an equitable outcome for all stakeholders and the business.

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About DFS Furniture plc

The Group is the clear market-leading retailer of living room furniture in the United Kingdom. We design, manufacture, sell and deliver to our customers an extensive range of furniture products. The business operates an integrated physical and digital retail network of living room furniture showrooms and web sites in the United Kingdom and other European countries, trading through our leading brands. The Group has been established and developed gradually over 50 years of operating history. We attract customers through our substantial and continued investment in nationwide marketing activities and our reputation for high quality products and service, breadth of product ranges and price points and favourable consumer financing options.